The American Property Casualty Insurance Association (APCIA), a trade association for home, auto, and business insurers, is warning those affected by the Los Angeles area wildfires to be cautious of third parties who prey on the insurance claims process.
“The entire insurance industry is focused on helping our policyholders recover by deploying all available resources to work with customers to process claims quickly,” Karen Collins, APCIA vice president of property and environmental, said. “Following large-scale natural disasters, predatory third parties often flock to hard hit areas to take advantage of homeowners in vulnerable situations and profit off the insurance claims process. Don’t be victimized twice. We encourage homeowners to protect themselves by being informed and cautious of anyone claiming to help with insurance claims, including services for no out-of-pocket cost.”
Third parties include public adjusters, independent business people who have no relationship with an insurance company or agent. When a public adjuster is involved, any check the homeowner receives from an insurance company is made out the homeowner and the adjuster and may require both signatures before it can be cashed. Policyholders also pay public adjusters’ fees, typically a percentage of the settled claim.
Policyholders are cautioned to understand all costs and services before signing a public adjuster’s contract.